Friday, September 14, 2012

WHY ECONOMIC STIMULUS PACKAGES DON’T WORK

 
 
The Obama administration and Bernanke are preparing for another failed attempt to stimulate the economy by throwing money at it. They would have a good chance of making it work if the government had some money to throw but the government is bankrupt.
Even if we were to go back to ancient times when the U. S. Government was not in debt, the government could not stimulate the economy with money because the only money the government has is what it takes from the citizens. Government does not produce anything or earn any income. The only source of money the government has is the citizens of the nation.
Therefore, when the government offers a stimulus package it does it by taking the money from the citizens and then handing it back to them, wasting a big part of it in the process. It doesn’t take a genius to see why that isn’t going to work. The government can borrow the money but all that does is delay the consequences and put the burden on people who aren’t even born yet. The past stimulus packages have proven that some of the people who receive the stimulus money spend more for a short time while others merely use it to pay off debts or put it away to use later. The economy may get a slight boost in one area but the overall effect is negative because more money is taken than is given.
So what is the answer? The answer is to remove the shackles so business and industry can come home again to American shores. Give business and industry, large and small, more freedom and more incentive to produce. Then they will do what government can’t do and that is produce goods and produce wealth.
Government talks about creating jobs but government can only create jobs by taking money from the citizens to pay for those jobs; another negative result. If government will get out of the way, private enterprise will create the jobs and pay the salaries while, at the same time, providing revenue for the greedy, wasteful government.

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